Correlation Between Hesai Group and Proficient Auto

Can any of the company-specific risk be diversified away by investing in both Hesai Group and Proficient Auto at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Hesai Group and Proficient Auto into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hesai Group American and Proficient Auto Logistics,, you can compare the effects of market volatilities on Hesai Group and Proficient Auto and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Hesai Group with a short position of Proficient Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hesai Group and Proficient Auto.

Diversification Opportunities for Hesai Group and Proficient Auto

0.46

Correlation Coefficient

Hesai Group  Proficient Auto

Very weak diversification

The 3 months correlation between Hesai and Proficient is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Hesai Group American and Proficient Auto Logistics, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proficient Auto Logi and Hesai Group is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Hesai Group American are associated (or correlated) with Proficient Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proficient Auto Logi has no effect on the direction of Hesai Group i.e., Hesai Group and Proficient Auto go up and down completely randomly.

Pair Corralation between Hesai Group and Proficient Auto

Given the investment horizon of 90 days Hesai Group American is expected to generate 1.75 times more return on investment than Proficient Auto. However, Hesai Group is 1.75 times more volatile than Proficient Auto Logistics,. It trades about 0.05 of its potential returns per unit of risk. Proficient Auto Logistics, is currently generating about 0.07 per unit of risk. If you would invest  1,470  in Hesai Group American on December 29, 2024 and sell it today you would earn a total of  50.00  from holding Hesai Group American or generate 3.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Hesai Group American  vs.  Proficient Auto Logistics,

Hesai Group American

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Hesai Group American are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Hesai Group demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Proficient Auto Logi

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Proficient Auto Logistics, are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent basic indicators, Proficient Auto disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hesai Group and Proficient Auto

The main advantage of trading using opposite Hesai Group and Proficient Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hesai Group position performs unexpectedly, Proficient Auto can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Proficient Auto will offset losses from the drop in Proficient Auto's long position.

The idea behind Hesai Group American and Proficient Auto Logistics, pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..